The Distilled Spirits Council and Wine Institute today issued a joint statement in response to the Tax and Trade Bureau’s (TTB) letter to the organizations regarding a program proposed by Kroger. At issue is whether the program violates the Federal Alcohol Administration Act and TTB regulations.

“The Distilled Spirits Council and Wine Institute appreciate TTB’s response to our inquiry which, in combination with its separate ruling, strongly suggests that participating in the Kroger program would put participating suppliers at risk of violating their federal permits required to conduct business.”

In addition, the Ohio Department of Commerce’s Division of Liquor Control stated in December 2015, that the Kroger program would violate the state’s tied house law and rules.

“Given TTB’s response, along with the statement of the Ohio Division of Liquor Control, we believe that participating in the Kroger program is ill-advised because it may put a supplier’s basic permit to do business in the United States at risk.”